Oil prices continue to rewrite multi-month highs amid general market optimism about the prospects for the global economy.
Investors were very optimistic about the news of great progress in the development of vaccines against coronavirus. Three companies immediately announced the high efficiency of their developments and that in the near future they plan to obtain permission for the mass use of the vaccine. The vaccination program in the US and some EU countries should begin in December. Investors hope that thanks to this, the spread of the pandemic will be able to stop and in 2021 the world economy will begin to recover quickly. This process will inevitably be accompanied by an increase in demand for energy carriers.
In the coming days, investors will gradually turn their attention to the OPEC meeting, which is to be held November 30 - December 1. Against the backdrop of recovery in oil prices, OPEC countries may revise their plans and increase production quotas from 2021. In this case, oil prices could come under pressure again. A further rise in prices can only be ensured if the current production quotas from OPEC + are maintained.
Today API reported on the rise in oil reserves for the week by 3.8 million barrels. EIA data will be released later. Inventories are expected to rise by 0.127 million barrels.
The bullish trend remains relevant on the chart. When trading, it is worth considering exclusively buying an instrument after the formation of pullback movements. In the medium term, the price growth may continue to the level of 48.40.
The main scenario is growth in the direction of 47.00.
An alternative scenario is a breakdown of the support at 44.80 and a decline to 43.50.
The current fundamental background is positive. We consider longs from support levels 44.80 and 43.50.
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